In this fast-moving world, saving is tougher than earning. Saving money for contingencies is a challenge for everyone. Without proper savings, a person may lead to immediate and several financial challenges. In this worst scenario personal loan in Singapore is often the best choice for the needy.
For a personal loan in Singapore, the money you borrow might depend on the course of your needs. But the creditability purely depends on credit score and repayment history.
Here are the most important factors to be considered to avoid unnecessary charges on a personal loan. It is always preferred to avail loan from the Best Money Lender in Singapore for genuine services.
Different Types of Loan in Singapore
There are two types of loan available in Singapore:
- Business Loan
- Personal Loan
Based on the business needs and collateral the business loan will be provided. The business loan amount might be fixed according to the company turn over, assets of the company, value of the company and import-export transactions.
A personal loan is an unsecured loan with the fast disbursal of money is available when a person maintains a good credit score and proper repayment history. The interest rate of personal loans is comparatively high as it is an unsecured loan available without any collateral.
Types of Loan one can apply for
A personal loan is taken at the time of worst scenarios like weddings, vacations, honeymoon, educational fees, huge purchases of expensive things, etc. It is not advisable to avail a personal loan to pay off credit card bills or home loan. Lender Singapore helps to avail a personal loan for your financial needs.
There are three types of personal loans
- Term Loan
- Revolving Loan
- Balance transfer Scheme
Term Loan is a type of loan that has a fixed interest rate and long tenure loan which is usually available from Best Money Lender in Singapore. A term loan is a fixed loan that involves a fixed amount paid over a fixed period.
A revolving loan is also called a line of credit that is convenient for the borrower. As it gives freedom to avail of this loan at any time until they reach the limit line. Once he pays off half of the amount, he is eligible to reuse the limit.
In the line of credit, an individual will pay the interest rate only for the borrowing amount and once he pays off a part of the loan, he is eligible to pay interest only for the remaining amount and not as full.
Balance transfer scheme: It is the type of personal loan allows the borrower to consolidate all the borrowed amount to a single amount. When an individual has multiple loan accounts and looking for debt consolidation this balance transfer scheme helps to avoid multiple interest rates for a different account.
The moneylender helps to close the entire remaining loan amount to the corresponding bank and helps to maintain one account with a consolidate loan with less interest. This is the most ideal choice for the person who maintains several loans like vehicle loans, housing loans, education loans, personal loans, credit card loans, etc.
The Balance transfer scheme of personal loans helps to avoid multiple interest rates for different loans to the consolidated debt loan with a huge amount in single banks with a single interest rate. This greatly saves the interest rate which you hardly-earned.
How to Avail a Personal Loan?
Find the Best Money Lender in SG and apply for the loan online. If you have a good credit score, your loan will be approved without any delay. Then provide all the required documents and read all the instructions and services provided by the Lender.
Things to Take Note of While Choosing a Personal Loan
- Personal loans are very cheaper than payday loans but the interest rate of personal loans is higher than Business Loan.
- For any loan, the credit score value must be good and you are afforded to pay off the loan with monthly installments without any delay. In worst scenarios, we are about to paycheque bounce charges, late fees, late fee interest, etc.
- A bad credit score and poor repayment history may affect you in the long run for future loans.
- Never apply to multiple Lenders; this may affect your future loans. During credit check, the lender knows the hungry of your credit availability this may reject your loan application form.
- Before choosing a Money Lender for your financial needs, do a proper search on websites and read about the reviews and testimonials about the Money lender.
- Make you educated about yourself on loans, interest rates, insurance plans, claims, mortgages, retirement plans, savings, etc. for your future.